Last updated: May 3rd, 2017 at 09:55 pm
DAX futures (March contract is FDXH7 and EXPIRES 17th March, continuation contract is FDXc1)
The bulls are hanging on but the big four month uptrend is coming under pressure by the recent consolidation.
Ultimately, the market is waiting for the next big catalyst, but the bullish trend being intact suggest the breakout will still be to the upside.
Equity market catalysts have tended to come from Trump, but the raft of central bank decisions over the next 24 hours could also have a say in direction (a “dovish hike” from the Fed could be a bullish driver).
The market is in a tight range above the key near term breakout support at 11,895 with momentum indicators increasingly benign.
The hourly chart shows a little pop to the upside in the past hour but this is nothing yet to confirm a breakout.
The sequence of higher lows around the 4 month uptrend is encouraging and the hourly chart shows the trend breaches have been very brief and not backed.
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